The Internal Auditor's Opinion in Terms of Due Professional Care

question 31

Multiple Choice

The internal auditor's opinion in terms of due professional care should be:

• A) Limited to the effectiveness of internal controls.
• B) Expressed only when consensus with top management has been achieved.
• C) Based on experience and free of all bias.
• D) Based on sufficient factual evidence.

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Definitions:

Joint Costs

Costs incurred when producing multiple products simultaneously, which cannot be easily attributed to a single product.

Weight Factor

A factor assigned to each product in a joint manufacturing process representing its importance in comparison to the other products.

Support Department

A division within a company that provides essential services or backup to the production or operations departments, not directly producing goods or services.

Cost Accounting

A type of accounting focused on capturing a company's total cost of production by assessing its variable and fixed costs.